Bet limit to kill pokie profits

Pubs and clubs could lose up to 39 per cent of poker machine revenue if the government supports a plan to roll out $1-maximum bets across the country.
The Greens propose restricting all poker machines to the maximum $1 bet per spin, with a $500 maximum jackpot.  A Centre for International Economics study, funded by Clubs NSW, the AHA and The Star casino, revealed pokies revenue could fall between 17 to 39 per cent.

Clubs Australia executive director Anthony Ball used data from the 2001 study in writing to federal MPs last week outlining opposition to the proposal.  Mr Ball said clubs would need to roll out new machines to replace current ones, which offer pokie players up to $10 bets per spin and $100,000 jackpots.  Club and pub lobbyists believe the Greens' policy will replace the mandatory pre-commitment plan put forward by Tasmanian independent MP Andrew Wilkie.

Mr Ball said the Productivity Commission had recommended that jackpots not be lowered.  "Just like mandatory pre-commitment this proposal will not help problem gamblers but will hurt an industry that provides tens of thousands of jobs for Australians and supports local communities, sports groups and charities," Mr Ball said.

Clubs Australia projected the overall cost to the clubs industry, including upgrading and replacing existing machines, could hit between $3 billion to $5 billion. "As there are no machines in Australia currently with a $1 maximum bet and $500 maximum jackpot, every machine will need altering or replacing," he said.
Blind trials found revenues in $1-maximum bet machines were 50 per cent lower in clubs and pubs.

Published in The Daily Telegraph on 21 November 2011, to read the story online visit here.